oracle inventory shital
DESCRIPTION
Oracle Inventory ShitalTRANSCRIPT
Oracle EBS Training Oracle EBS Training OnOn
Inventory ModuleInventory Module
-Shital Kendre
KTCS,Pune
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
Introduction to Oracle Inventory management
What is Inventory?
Stocking ,tracking and maintaining the level of different items like Raw
material, Finished Goods, etc in an organization.
Introduction to Oracle inventory managementIntroduction to Oracle inventory management
Oracle Inventory enables users to satisfy a company’s business needs, area such as:
Defining part numbers
Modeling organization structures
Tracking perpetual inventory
Maintaining accurate on-hand balances
Planning material replenishments
Forecasting anticipated demand
Inventory management
Inventory Integration with other modules
OracleOraclePurchasingPurchasing
Oracle Oracle Inventory Inventory
ExternalSystems
OracleOracleWIPWIP
Oracle CostOracle CostManagementManagement
OracleOracleEngineeringEngineering
Oracle BillsOracle Billsof Materialof Material
Oracle Order Oracle Order ManagementManagement
Oracle MasterOracle MasterScheduling/MRPScheduling/MRP
OracleOracleFlow ManufacturingFlow Manufacturing
OracleOracleShippingShipping
OracleOracleProject Project
ManufacturingManufacturing
Inventory management
Item
Item
An item is a part or service that are purchased, sold, planned, manufactured, stocked, distributed, or prototyped .
Item Statuses and Attributes
Status attributes are item attributes that enable key functionality for each item. An item status is defined by selecting the value check boxes for the status attributes.Both status attributes and item status can be controlled at the item level or organization levels.
Inventory management
Unit of Measure A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item.
For example, “each” is a unit of measure that used to specify the number of units of an item. A unit of measure class is a group of units of measure with similar characteristics. For example,
“weight” can be a unit of measure class with units of measure such as kilogram, gram, pound, and ounce.
A unit of measure conversion is a mathematical relationship between two different units of measure.
Organization Calendar workday calendar must be defined in Inventory if the following are to be performed :
inventory forecasting ,reorder-point planning, available-to-promise analysis or cycle counting.
Inventory automatically generates a workday pattern (the base calendar) that includes all days, including non-workdays, between the start and end dates specified.
workday exceptions can be assigned to the base calendar to denote holidays, schedule maintenance, or overtime.
Inventory management
Categories and Category Sets
Categories are logical groupings of items that have similar characteristics.
A category set is a distinct category grouping scheme and consists of categories.
Inventory management
Finished GoodFinished Good
SubassemblySubassembly
HardwareHardware
SoftwareSoftware
PCPC
OtherOther
Category Grouping
Inventory Category Set Purchasing Category Set Craig Category Set
Inventory management
Inventory management
Inventory Transaction
A transaction is an item movement into, within, or out of inventory. A transaction changes the quantity, location, or cost of an item. Inventory supports a number of predefined and user-defined transaction types.
Every material movement has a corresponding set of accounting transactions that Oracle Inventory automatically generates.
All transactions validate the various controls (revision, locator, lot number, and serial number) enabled for items.
Inventory management
Introduction to Oracle inventory
Material FlowMaterial Flow Business FlowBusiness Flow
Receive GoodsReceive Goods
Ship GoodsShip Goods
Move GoodsMove Goods
MRPMRP Order EntryOrder Entry
PurchasingPurchasing
InventoryInventory
WIPWIP
Inventory Transaction
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
Inventory Enterprise Structure
The Oracle Applications organization models define organizations and the relationships among them in arbitrarily complex enterprises. This organization model serves as the cornerstone for all of the Oracle Applications products. It dictates how transactions flow through different organizations and how those organizations interact with each other.
Inventory Enterprise StructureInventory Enterprise Structure
Inventory Enterprise StructureInventory Enterprise Structure
LELELELE
Set of Books
IOIO
OUOUOUOU
IOIOIOIO
OUOU
IOIOIOIO IOIO
BG
Organization Structure
Inventory Enterprise Structure Multi-org
Multi-Org is a key component that provides secure access to the different organizations of the enterprise supports multiple organizations of the enterprise structure in a single database.
Operating Unit is the primary organization unit through which user secures transaction data, but also creates processes and reports on financial applications data. An Operating Unit can be used to model an autonomous business unit that performs one or more business activities and creates transactions with financial impact.
Inventory Enterprise Structure
Business Group This is an Organization that represents the
consolidated enterprise, a major division, or an operation company and has no accounting impact. The Business Group partitions Human Resources information and the Purchasing Approval Hierarchy. If you request a list of employees (in any module) you will see only those employees in the Business Group of which your Operating Unit is a part. Multiple Legal Entities can relate to a single Business Group.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
Inventory Enterprise StructureInventory Enterprise Structure Set of Books
Set of Books is the financial reporting entity that secures financial entries and account balances within the GL application. SOB will be based on 3C’s (Currency, Calendar, Chart of Accounts)
A Set of Books is the highest level that impacts accounting. A Set of Books is associated with a single Business Group, but multiple Sets of Books may be associated with a single Business Group
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
Inventory Enterprise Structure
GRE/Legal Entity
The Legal Entity represents a legal company for which the user prepares fiscal or tax reports.
Legal Entities are associated with a Set of Books. One or more Legal Entities may be associated with a single Set of Books, and multiple Legal Entities may be associated with a single Business Group.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
Inventory Enterprise Structure Operating Unit
An operating unit represents an organization that uses any Oracle subledger application, for example, Order Management, Payables. It may be a sales office, a division, or a department. An operating unit is associated with a legal entity. Information is secured by operating unit for these applications. Each user sees information only for their operating unit.
Inventory Organizations An inventory organization is a facility in your enterprise where you store
and transact your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.
Inventory Organizations belong to an Operating Unit.
OU
Set of Books
Legal Entity
Business Group
Inventory Organization
Inventory Organization Structure
Inventory Enterprise Structure
Inventory Organization Structure
Organization
Subinventories
Locators
Inventory Enterprise StructureInventory Enterprise Structure
Organizations– An inventory organization is a facility in your enterprise where you store and transact
your inventory items. The items in an inventory organization can be in the form of raw materials, semi-finished goods, or finished goods for varying periods of time.
A physical entity such as a manufacturing facility, warehouse, distribution center, or a branch office.
A logical entity such as an item master organization, which you can use just to define items but no transactions. The item master organization is discussed in detail in the lesson titled “Defining and Maintaining Items Fundamentals.
Subinventory
Subinventories are unique physical or logical separations of material inventory, such as raw material inventory, finished goods inventory, or defective goods inventory. In Oracle Inventory, all material within an organization is held in a subinventory. Therefore, you must define at least one subinventory.
Locator
You use locators to identify physical areas where you store inventory items. Item quantities can be tracked by locator. Items can also be restricted to specific locators
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
Inventory Setup
Organization Setup
Before using Oracle Inventory, one or more organizations need to be defined. Organizations represent distinct entities in a company and can include separate manufacturing facilities, warehouses, distribution centers, and branch offices.
Organizations can be classified and connected to model the overall enterprise structure. The classifications include: Business Groups Legal Entities (LE) / Government Reporting Entities (GRE) Operating Units Inventory Organizations
Inventory Setup
Using an Item Master Organization
Item Master Organization is usually the first Inventory organization that is set up. Its single purpose is for entering items. It has no subinventories and is not used for inventory transactions. Items are entered in an item master organization and then assigned to be used in child organizations.
Child Organization is an inventory organization with at least one subinventory that is set up for processing inventory transactions. It is not used to enter items. It gets a list of items from the master.
Inventory Setup
Organization Setup
Organization
Subinventory
Locator
Inventory Organizations are made up of one or more subinventories which can be made up of one
or more locators
Subinventory set up
A subinventory is a physical or logical grouping of inventory, such as raw material, finished
goods, defective material, or a freezer compartment.
The subinventory is the primary place where items are physically stocked. A subinventory must
be specified for every inventory transaction
Subinventories can be further divided into areas designated as locators.
Inventory Setup
Inventory Setup
Workday Calendar
Workday calendar can be defined both in Inventory and Bills of Material.
It defines which days are “ON” within an organization and which shifts are available to be worked. The
workday calendar is the Oracle term for a manufacturing calendar.
The workday calendar is separate from the Oracle General Ledger calendar.
Each organization references a workday calendar.
Inventory Setup
Units of Measure
Units of measure (UOM) are defined for tracking/moving/storing & counting items. Each item
defined in Inventory must have a primary UOM. Each transaction performed in Inventory must have
a UOM associated with the transaction quantity and a conversion defined back to the primary UOM.
Multiple related UOMs are grouped together in a class with a base unit of measure Inventory
uses the base UOM to perform conversions between units of measure in each class and between
two different unit of measure classes.
A unit of measure (UOM) is a term used along with a numeric value, to specify the quantity of an item. For example, “each” is a unit of measure used to specify the number of units of an item.
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
Creating and Maintaining ItemsSetting up item Definition
DefineItems
Choose Item Attribute Control Levels
DefineCategories and Category Sets
CreateTemplates
DefineStatuses
3
DefineCatalogs
1
2
DefineStatusControlLevels
DefineUOMs
Creating and Maintaining Items
Item Attributes
Item attributes are fields in the item table used to store specific characteristics of an item, such as item status, unit of measure, revision control, etc.These can be controlled at either the master or the organization level.
Attributes Controlled at the Master Level
An item has the same value for such attributes in all organizations in which it is defined.
Master-level attributes can be only updated by using the Master Item window.
Inventory reflects your changes in all organizations that carry the item.
Attributes Controlled at the Organization Level
An item may have different values for such attributes in each organization in which it is defined.
When defining items in the item master, defaults for organization-level attributes can be specified.
Values of organization-level attributes can be updated only by using the Organization Item form in each
organization that carries the item.
Creating and Maintaining ItemsCreating and Maintaining Items
Functional Area Functionality
Stockable
Purchasable
Transactable
Build in WIP
InventoryAllows to store the item in an asset subinventory
Inventory, Order Management, Purchasing, WIP
Allows to transact the item Inventory, OM, PO and WIP
Purchasing Allows to place the item on a purchase order
Work in ProcessAllows to build the item on a discrete job and/or a repetitive schedule
Status Attribute
Status Attributes and Functionality
Creating and Maintaining Items
Status Attribute
Internal Orders Enabled
BOM Allowed
Customer Orders Enabled
Invoice Enabled
Functional Area Functionality
Order Management
Inventory, Order Management, Purchasing
Bills of Material
ReceivablesAllows to create an invoice for the item
Allows to create a bill of material for the item
Allows to create an internal sales order for the item
Allows to place the item on a sales order
Status Attributes and Functionality
Creating and Maintaining Items
Item Status
When defining an item, status must be given by using the Item Status attribute. The Item Status
attribute has a user defined set of yes/no values for the status attributes. The values are applied to
the status attributes when an item status code is chosen when defining an item.
For example, in the beginning of a product development cycle Item Status attribute is set to
Prototype with all of the status attributes defaulted to yes except for Customer Orders Enabled.
When the item is ready the Item Status attribute is set to Active to allow all functions for the item.
Creating and Maintaining Items
Item Attributes
Status Control
An unlimited number of status codes can be defined by the user.
One or more of these status codes can be assigned to an Item for implementation on a future date. The
status codes then automatically change on their user specified effectivity dates.
Creating and Maintaining Items
Item Templates
Templates are defined sets of attributes that can be used over and over to create many similar items.
Templates make initial item definition easier and more consistent.
Templates can be applied at any time after the item is created. Multiple templates can be applied to a
single item.
Templates can hold a complete set of attributes or a partial set. If a partial set, then only values
stored in the template overwrite those on the item
Creating and Maintaining Items
Item Templates
Users can define their own templates or predefined templates include:
ATO Model ATO Item ATO Option Class
PTO Model Phantom Item PTO Option Class
Subassembly Freight Supply Item
Finished Good Outside Processing Item
Planning Item Reference Item
Product Family Purchased
Creating and Maintaining Items
Item Categories
A category is a logical classification of items that have similar characteristics.
A category set is a distinct grouping scheme and consists of multiple categories.
Some application modules, Inventory , for example require that all items are assigned to a category.
The user specifies a default category for this purpose in each of these modules. Categories and
category sets are used to group items for various reports and programs.
Creating and Maintaining Items
Defining Items
With the Master Item window, items and the attributes associated with them (such as description, unit of
measure or lot control) can be defined and updated.
Much of the information for an item is optional. Only the information needed to maintain the item are
defined.
An item cannot be defined at the Organizational level. Oracle will automatically switch to the Master
Item window when defining a new item.
Creating and Maintaining Items
Defining ItemsAn item is a part or service that is purchased, sold, planned, manufactured, stocked, distributed, or prototyped. The following Modules use items:
Items
Lead Time
Attributes
Inventory
Attributes
Invoicing
Attributes
MRP/MPS
Attributes
Costing
Attributes
Bills of Material
Attributes
Order Management
Attributes
Purchasing
Attributes
Planning
Attributes
Work in Process
Attributes
Receiving
Attributes
Service
Attributes
Creating and Maintaining Items
Master Item vs. Organizational Item
Whether an item attribute is defined/maintained at the Master level or the Organization level can be designated.
Attributes at the Master level are the same across all organizations that the item is assigned to.
If an attribute is maintained at the Organization level, it can have different values in each organization the item is assigned.
Some attributes can be maintained at only the Master level or the Organizational Level. Unit of Measure should be maintained at the Master level. Min-Max should be maintained at the organizational level if multiple organizations are used.
Creating and Maintaining Items
Defining Items
(N) Inventory>Items>Master Items
Creating and Maintaining ItemsDefining Items
Organization Assignment
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
Agenda
Inventory Controls
With Inventory locator, revision, lot and serial number control can be implemented
Flexibility:
- Inventory controls are optional for all items.
- any combination of the four controls (locator, revision, lot and serial number) for each item can be implemented.
Overview
Inventory Controls
Locators are optional structures within subinventories.
Locators are the third level in the enterprise structuring scheme of Oracle Inventory .
Locators may represent rows, aisles, or bins in warehouses. Items can be received directly into and
shipped items directly from locators.
Locator setup
Inventory Controls
A revision is a particular version of an item, bill of material, or routing.
By using the ‘Revision control’ option while defining items item quantities can be tracked by item revision. To do so a revision is a must for each material transaction.
Revision control is enabled for items for which version changes or changes that are significant enough to track but are not affecting the function and feature of the item are tracked .
Revision Control item attribute cannot be changed when an item has quantity on hand.
Revision Control
When defining Revision numbers letters, numbers and characters such as A, A1, 2B, etc can be used.
Letters are always in upper case and numbers may include decimals.
To ensure that revisions sort properly, decimals should always be followed by a number.
Revisions are sorted according to ASCII rules.
Each revision must be greater than the previous revision. For example, revision 10 cannot be used after revision 9 because, according to ASCII sorting, 10 precedes 9.
Inventory Controls
Inventory provides complete lot number support for inventory transactions.
A lot identifies a specific batch of an item that is received and stored in an organization.
Lot control is a technique for enforcing the use of lot numbers during material transactions, thus enabling the tracking of batches of items throughout their movement in and out of inventory.
If Lot Control is turned on for an item, the lot number must be indicated to perform a transaction.
Lot Control
Lot Control must be turned on at the item level.
lot numbers must be assigned whenever items under lot control are received into inventory.
An inventory receipt can be split in to several lots, as necessary.
Quantities can be added to existing lot numbers.
Inventory will generate default lot numbers by using the default lot number generation method which is configured in the Organization Parameters window during setup.
Inventory Controls
Lot can have an expiration date by assigning a number of lot control shelf life days or by entering a lot expiration date.
The expiration date controls the availability of the lot for transacting and planning purposes.
Lot Control
Inventory Controls
Disabled Lots:
Disabling a lot only prevents it from appearing in a list of values when performing receipt transactions.
Lot Control
Inventory Controls
A serial number is an alphanumeric piece of information assigned to an individual unit of an item. A serialized unit is a combination of an item number and a serial number.
Individual units of items can be tracked by using serial numbers. Serial number control is a system technique for enforcing the use of serial numbers during a material transaction. Serial numbers can be used to track items over which a very tight control is to be maintained.
One serial number per unit of an item can be assigned
Serial Control
Inventory Controls
Inventory uses the starting serial number prefix and the starting serial number specified in the Item screen .
The process of generating serial numbers is done through a concurrent report. This does not assign numbers to units in inventory, it simply reserves serial numbers for an item, for later use.
Serial ControlGenerating Serial Numbers
Depending on how Serial Number Control is set at the Master Item level will determine how serial numbers are generated.
If No Control is specified as the serial number control type, no serial number control will be enforced.
If Predefined is specified as the serial number control type, serial numbers for that item must be predefined.
If control At inventory receipt or At sales order issue, optionally serial numbers for the item can be predefined.
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
Inventory Transactions
Understanding of Transaction Types
Overview of Inventory Transactions
Miscellaneous Transactions
Subinventory Transfer
Inter Organization Transfer
Receipts
Move Orders
Overview
A transaction type is the combination of a transaction source type and a transaction action. It is used to classify a particular transaction for reporting and querying purposes.
TransactionSource Type
TransactionType
TransactionAction
Inventory Transactions
Inventory Transactions
Types of Inventory Transactions
Miscellaneous Transactions- This transaction is used to do adjustments in stock due to damage, obsolescence, issuing items for R & D or issuing track able expense items.
Subinventory Transfer- This transaction is used to transfer goods from one stockroom to another with in the same inventory organization.
Inter ORG Transfers- This transaction is used to transfer goods from one inventory organization to another.
Inventory Transactions
Receiving Transactions- This transaction is used to move goods from receiving dock to specified subinventory and locator.
Sales Issue- This transaction is used to move goods from pick subinventory to staged subinventory.
WIP Issue- This transaction is used to issue materials against production orders.
MiscellaneousMiscellaneousReceiptReceipt
MiscellaneousMiscellaneousIssueIssue
OrganizationOrganization
SubinventorySubinventoryTransferTransfer
Subinventory
Locator
Locator
SubinventoryTransfer
Subinventory
Locator
Locator
Organization
Direct Direct InterorganizationInterorganizationTransferTransfer
Interorganization Interorganization Transfer by WayTransfer by Way
of Intransitof Intransit
Inventory Transactions
Select the transaction type
Account for passing
adjustment transactions
If you want to enter transaction line by serial number for
serialized item check this box
Miscellaneous Transactions
Inventory Transactions
Enter the quantity to be adjusted
Lot or serial number can be entered if item is a serial controlled or
Lot Controlled
Miscellaneous Transactions - Transaction Lines
Inventory Transactions
Use the Subinventory transfer window to:Transfer material within your current organization between subinventories, or between two locators within the same subinventory
Subinventory transfer
Inventory Transactions
The type can be Subinventory transfer to transfer from one
subinventory to another or any of the user defined transaction
type for source inventory & action subinventory transfer
Subinventory Transfer
Inventory TransactionsInventory Transactions
Subinventory Transfer Transaction Lines
Enter source subinventory Enter
destination subinventory
Enter Quantity
Saving the record will complete the transaction.
Inventory TransactionsInventory Transactions
Pune
Organization
Mumbai
Organization
Delhi
Organization
Pune
Organization
Use IntransitInventory
(FOB = Receiving)
AustinOrganization
RequireInternal Order
to Ship
Use IntransitInventory(FOB = Shipping)
DirectTransfer
You need to define shipping network before doing inter organization transfer
Inter Org Transfer
Inventory Transactions
Direct Inter–organization Transfers
We can use a direct inter–organization transfer to move inventory directly from a shipping organization to a destination organization. The validity of a transfer transaction depends on the controls we have defined in both the shipping and destination organizations for the items we want to transfer.
Inter Org Transfer
Inventory Transactions
Inter–Organization Transfers via Intransit Inventory
We usually transfer material to intransit inventory when transportation time is significant. When we perform the transfer transaction, we do not need to specify the delivery location. We only need to enter the subinventory we are shipping from, a shipment number, the freight information, and, depending on the inter–organization transfer charge that applies between the organizations, a percentage of the transaction value or a discrete amount that Oracle Inventory uses to compute transfer charges.
Type of Receipt Transactions Receive both internally and externally sourced shipments Process unordered receipts Receive substitute items Inspect items for quality control and invoice matching needs Correct transaction errors Receive returned items into inventory Return delivered items to receiving
Note: As part of inventory training only standard receiving transaction will be covered with receipt routing as Direct Delivery
Receipts
Inventory Transactions
Use the Find Expected Receipts window to:Find source documents for which you can enter receipts. Use the Supplier and Internal tabbed region to search for Purchasing documents.
Receipts
Inventory Transactions
Overview Of Move Orders
•Move orders are requests for the movement of material within a single organization.
• Manage all material requisition and request processes within an organization by manually or automatically creating, approving, and transacting a move order.
• Used for movement of material within a warehouse or facility for purposes like replenishment, material storage relocations, and quality handling.
Move Orders
Inventory TransactionsInventory Transactions
Move OrderRequisition
• Account Transfer• Subinventory Transfer
• Manually Generated• Optional Approval Processing
ReplenishmentMove Orders
• Kanban• Min Max• Replenishment • Count
• Automatically Generated• Pre-approved• Ready for Transaction
Move Order Type Transaction Type Generation & Approval
Pick WaveMove Orders
Sales Order PickInternal Order Pick
• Pre approved• Print Pick Slip
Move Orders
Inventory TransactionsInventory Transactions
Move Order Process Flow
PickingPicking
SourceSourcelocationlocation
Destinationlocation
Put awayPut away
Pick Pick TicketTicket
Move order locates Move order locates material sourcesmaterial sources
In case of shortageIn case of shortagemove ordermove order
can be re-plannedcan be re-planned
Move orderMove orderrequisitionrequisition
createdcreated
Approve move Approve move
orderorder
Inventory TransactionsInventory Transactions
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
Inventory Accuracy Control
Cycle Counting
Cycle counting is the periodic counting of individual items throughout the year. Count items of higher value more frequently than items of lower value. The differences between the system quantity and counted quantity are adjusted to correct the system quantity and inventory value in the system.
Physical inventory
A physical inventory is a periodic reconciliation of system on-hand balances with physical counts in inventory. It is normally done once in a year as a part of financial auditing requirement to verify inventory assets on balance sheet. Production is stopped at the time of carrying out this activity.
Inventory Accuracy Control
Define cycle count header
Update cycle-count items
Schedule items to count
Generate count requests
Enter cycle counts
Approve cycle counts
ABC Classification of items
Cycle Counting
Inventory Accuracy Control
ABC Analysis
•ABC analysis is a method of determining the relative value of items in your inventory sites.
• An ABC analysis involves ranking your items according to a criterion and then grouping items into classes.
ABC Classification
Inventory Accuracy ControlInventory Accuracy Control
Define ABC group
Assign items to ABC classes
Update class assignments
Purge ABC information
Define ABC compilation Define ABC classes
ABC AnalysisABC Classification
Inventory Accuracy ControlInventory Accuracy Control
ABC Compilation
Criterion for categorizing your items in
Organization. It can be based on current value or
historical usage value
Cost type to pick up the unit cost
of items in compile set
Press Compile to generate
compile results
ABC Classification
Inventory Accuracy ControlInventory Accuracy Control
Use ABC classes to identify the value groupings to which items belong. Define these classes using own terminology. For example, you might define classes High value, Medium value, Low value. Assign items of highest rank to the High class, those of lower rank to the Medium class and those of lowest rank to the Low class. Can use ABC classes to group items for a cycle count where you count “A” items more frequently than “B” items.
ABC Classification
Inventory Accuracy ControlInventory Accuracy Control
ABC Classes
Define class names for your
ABC Classification purpose
ABC Classification
Inventory Accuracy ControlInventory Accuracy Control
Schedule Cycle Count
Automatic Scheduling
Oracle inventory uses the number of items in each cycle count class, the frequency of each class, and the workday calendar of your organization to determine how many and which items you need to count during the scheduling frequency.
Manual Scheduling
You can manually schedule counts in addition to or instead of those generated with automatic scheduling.
Cycle Counting
Inventory Accuracy ControlInventory Accuracy Control
Generate Cycle Count Request
Cycle count Scheduler for automatic scheduling
Generate Cycle count request to generate cycle count entries
Cycle Counting
Inventory Accuracy ControlInventory Accuracy Control
• Oracle Inventory provides a fully automated physical inventory feature that you can use to reconcile system-maintained item on-hand balances with actual counts of inventory. Accurate system on-hand quantities are essential for managing supply and demand, maintaining high service levels, and planning production. You can:
• A physical inventory is done once a year to check and correct the accuracy of your inventory. Often used by banks to audit their investment into your company or to simply reset your stock levels so that inventory is correct and customer service is not impacted by wrong information.
• You can define and maintain an unlimited number of physical inventories in Oracle Inventory. A physical inventory is identified by a unique name you assign. You use this name to identify any activity, such as adjustments, pertaining to this physical inventory.
• You can define multiple physical inventories to count selected portions of your inventory, or you can count your total inventory. For example, if your warehouse has two large stockrooms, each represented by a subinventory, you can define two physical inventories, one for each subinventory. You can then perform your physical inventory of the first stockroom, independent of the second.
Inventory Accuracy Control
Physical Inventory
Inventory Accuracy Control
Define physical inventory
Take snapshot of on-hand quantities
Generate tags
Count items
Enter counts
Void tags
Approve counts
Run adjustment program
Purge physical inventory
Physical Inventory
Inventory Accuracy Control
Perform Physical Inventory Adjustments
The system performs adjustments by creating a material transaction for the +/- quantity of the adjustment. Once adjustment program is run the system does not allow a new tag generation or any further updates to the tag counts.You must approve or reject all adjustments or the system will not run the adjustments program. Tag quantities, adjustment quantities, and adjustment values can be reported before performing the adjustments.You can use the adjustment report to authorize approvals or request recounts of items with large pending adjustments.
Inventory Accuracy Control
Inventory Accuracy Control
Purge Physical Inventory
Purging tags only: You can purge all tags associated with a physical inventory definition. If irreversible mistakes are made in the count-entry phase, you can start over without refreezing your inventory.
Purging All Information You can purge the physical inventory definition, frozen quantities, tags and count quantities. This purge deletes adjustments but not the adjustment material transactions.
Inventory Accuracy Control
Introduction to Oracle inventory management
Inventory Enterprise Structure
Inventory Setup
Creating and Maintaining Items
Inventory Controls
Inventory Transactions
Inventory Accuracy Control
Inventory Planning
AgendaAgenda
Inventory Planning
• Performing Min-Max planning
• Performing reorder-point planning
• Subinventory replenishment planning
• Creating and executing Kanban cards
Planning methods:
Min-max planning is a method of determining when and how much to order based on user-defined minimum and maximum inventory levels. In Oracle Inventory you can perform min-max planning at two levels:
Organization: To perform organization-level min-max planning for an item, you must specify organization-level minimum and maximum quantities.
Subinventory: To perform subinventory-level min-max planning for an item, you must specify subinventory-level minimum and maximum quantities.
Inventory Planning
MIN MAX Planning
Inventory Planning
Enter minimum quantity
Enter maximum quantity
Enter fixed lot increments
Enter minimum order quantity
Enter maximum order quantityRun min-max report
Yes
No
Do you wantspecific lot
increments?
Determine minimumand maximum
quantities
MIN MAX Planning
Inventory Planning
Inventory Planning
The following equation represents when you should order:
Quantity Available= Min QTY- on hand quantity + quantity on orderIf Quantity Available is>0, the order should be placed
Order quantity = (maximum quantity) - [(on-hand quantity) + (quantity on order) ]
You can constrain the order quantity by specifying the following order modifiers for an item: Fixed lot multiplier Minimum order quantity Maximum order quantity
Inventory Planning
MIN MAX Planning
Inventory Planning
Enter item planning attributes.
Define subinventory-level min-max information (optional).
Run the Min-max report.
MIN MAX Planning
Enter the following:• Min-max minimum quantity• Min-max maximum quantity• Fixed-lot-size multiplier• Minimum order quantity• Maximum order quantity
Specify a planning level (either Organization or Subinventory).
Set up the appropriate profile value for requisition approval.
Select an Inventory Planning method.
Inventory Planning
MIN MAX Planning
Inventory Planning
Inventory Planning
Enter the minimum and
maximum quantity
Enter the planning method as Min Max Planning
Enter the source type as supplier if you want to
generate purchase requisitions. Enter
subinventory or organization if you want to generate move
orders
MIN MAX Planning
Inventory Planning
Inventory Planning
Min Max Report
Planning level can be organization or
subinventory. If it is subinventory the min max quantity should
have been maintained at subinventory level
Demand cut off date for demand
calculation
Inventory Planning
Inventory Planning
What are the different sources of supply to be
considered for calculation of quantity available
The program includes nettable subinventory as supply. In order to include non nettable subinventory make it
yes
If you don’t want to generate orders keep the option as No. it will print report for all those items
where quantity available is less than Min Quantity
MIN MAX Planning
Inventory Planning
Oracle Inventory ProcessesOracle Inventory Processes
Oracle Purchasing ProcessesOracle Purchasing Processes
Run Order ImportOracle Order Entry ProcessesOracle Order Entry Processes
Min-Max Planning
Reorder-Point Planning
Subinventory Replenishment
Populate Requisition Interface
Run Req. Import
Create Purchase Requisition
Create Purchase Order
Create Internal Requisition
Create Internal Order
Kanban
Inventory Planning
Inventory Planning
Reorder-point planning is a method of determining the size and timing of item replenishment orders.
Reorder-point planning uses the following pieces of information:Safety stockReplenishment lead timeitem demandOrder costCarrying cost
Reorder-point planning
Inventory Planning
QuantityQuantity
TimeTime
Reorder PointReorder Point
Safety StockSafety Stock
Inventory Planning
Reorder-point planning
Inventory Planning
You can perform-reorder point planning for the entire organization.
You can use Reorder-point planning for items under independent demand.
You can specify Reorder-point planning as the inventory planning method when you define an item.
You can use Reorder-point planning for items that you do not need to control very tightly and that are not very expensive to carry in inventory.
Reorder-point planning
Inventory Planning
Enter item planning attributes.
Define safety stocks.
Forecast Item Demand
Run Reorder-point report.
Reorder Point Planning Steps
Forecast item demand
Inventory Planning
Inventory Planning
Item Planning Attributes
Specify a maximum-order quantity.
Enter a carrying cost percent.Select Reorder-point as the inventory planning method.
Enter an order cost.Specify a fixed-lot size
multiplier.
Specify a minimum-order quantity.
Reorder-point planning
Inventory Planning
Inventory Planning
Enter Lead Times
Enter processing lead time.
Enter preprocessing lead time.
Enter postprocessing lead time.
Reorder-point planning
Inventory Planning
Inventory Planning
Item Planning Attributes
Set your planning method
Set your lead times on the lead time tab
Safety Stock method
Reorder-point planning
Inventory Planning
Inventory Planning
You can select one of the following three safety stock calculation methods for each item: User-defined quantityYou can enter safety stock quantities and the date for which each quantity is effective. You can update safety stock quantities that you previously entered or that Oracle Inventory calculated for you.
User-defined percentageTo use the user-defined percentage method, you must use the Reload Safety Stock window and specify the following information for the item:A forecastA safety stock percent
Reorder-point planning
Entering Safety Stock
You can select one of the following three safety stock calculation methods for each item:Mean absolute deviation
To calculate safety stock using this method, you submit a concurrent request using the Reload Safety Stock window. In this window, you must specify the following information:
A forecastA service level percent
safety stock = Z × 1.25 × (mean absolute deviation)where Z is the appropriate value from a table of standard normaldistribution, corresponding to the service level. The mean absolute deviation is a measure of how the forecast demand deviates form the actual demand.
Inventory Planning
Thank you….